Finland’s construction industry expanded at a relatively fast pace in 2016-2017, averaging 6.3% per year in real terms. This in part reflects the continuing recovery from the weakness recorded in the early part of the review period (2013-2017). The recent period of solid growth was also driven by positive developments in regional economic conditions, a revival in both investor and consumer confidence and government investment in renewable energy and social infrastructure. Furthermore, the European Union’s (EU) financial aid to enhance the country’s competitiveness supported the industry’s growth during the review period.

Over the forecast period (2018-2022), the industry’s expansion is expected to be supported by investments in transport, energy and residential infrastructure projects. The implementation of government flagship programs such as the General Government Fiscal Plan for 2017−2020 and the National Energy and Climate Strategy 2030 are also expected to support the industry’s growth over the forecast period.

Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Finnish construction industry

Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 36.7% of the industry’s total value in 2022, supported by an increase in the number of residential buildings permits issued in the country. Market output is also expected to be driven by the rising demand for new residential units due to the country’s expanding population and ongoing urbanization.

Forecast-period growth in the Infrastructure construction market will be supported by the government’s focus on the expansion and maintenance of road, rail and sea ports with an aim to tackle traffic congestions and retain the quality of country’s transport network. The government plans to spend EUR2.8 billion (US$3.2 billion) annually on the maintenance and modernization of transport infrastructure during the period of 2018-2021.

Under the National Energy and Climate Strategy 2030, the government aims to increase the share of renewable energy in the country’s total energy mix from 36% in 2017 to 50% by 2030. Accordingly, the government plans to invest EUR23.0 billion (US$26.0 billion) to build the renewable energy related infrastructure by 2030. The government’s initiative will drive funding towards renewable energy projects over the forecast period.

The Finnish energy and utilities construction market’s growth will be supported by the Government’s focus on high-speed broadband connectivity. The government aims to provide an internet connection speed of up to 1.0Gbps to 98% of the population by 2025. Accordingly, in 2017, the Ministry of Transport and Communications initiated the preparation of a new national broadband strategy, under which it aims to develop wireless broadband and fiber-optic networks across the country in order to provide high-speed internet access.

The total construction project pipeline in Finland - as tracked by GlobalData and including all mega projects with a value above US$25 million - stands at EUR64.6 billion (US$73.0 billion). The pipeline, which includes all projects from pre-planning to execution, is relatively balanced, with 51.9% of the pipeline value being in projects in the late stages as of October 2018.

Scope

This report provides a comprehensive analysis of the construction industry in Finland and also provides -